Nebraska Judge Stephanie Stacy has
thrown out the proposed Keystone Pipeline
route through her state, this in a ruling Wednesday from a court in Lincoln, Nebraska. The ruling may
mean that President Obama can now put the issue on the back burner until after
the 2014 midterm elections.

Judge Stacy’s ruling invalidates
legislation put forward by Nebraska Governor Dave Heineman that would have approved
the new route through the state. The
move by the governor was an effort to expedite a time-consuming decision by the
state’s public service commission.

Now, the TransCanada Corp., builders of the controversial
pipeline that would bring Canadian oil all the way to refineries on the Gulf of Mexico,
will have to seek approval by the commission.
Bypassing the commission would have saved the company as much as seven
months, the estimated length of time that it takes for commission
approval. Nebraska Attorney General Jon
Bruning has already appealed the judge’s ruling.

“This gives the
US State Department and Obama an out,” says University of Calgary business professor Bob Schulz. “Why would
they decide if they don’t have to decide? I think he’s going to push it back
another year.”

Midterm elections on the horizon

In a year in which President Obama
has seen his approval ratings dropping and important midterm elections in both
the House and the Senate, the last thing he wanted to have on his plate was the
controversial Keystone Pipeline issue.
While green activists are adamantly opposed to the pipeline, afraid it
will pose a risk to the environment, proponents of Keystone point to this
year’s record-setting winter cold, the rise in demand for natural gas and the a
lack of infrastructure that has caused the price to double in just a few short
months.

Proponents of the pipeline argue
that while of course there is always some risk involved, it is but
nominal. Millions of barrels of North
American oil could be pumping through the pipeline every day, helping America to become less dependent on oil from places like Venezuela and the Middle
East.

Delaying the vote also allows
President Obama and his fellow Democrats to circumvent the topic in what is
gearing up to be a heated election year.
Public officials running for reelection may very well come under fire if
they were to show opposition to the project, especially in states where it
could have a real economic impact.

Environmental groups are not only
worried about any possible leakage from the pipeline and what that might do to
the environment, they are also concerned with its affect on climate
change. But those who are in favor of
the pipeline argue that it will bring much needed jobs to the US and economic expansion.
The pipeline, if completed, would stretch all the way from the oil-rich
provinces of Western Canada to refineries on the GulfCoast of the United States.

It’s a State Department issue as well

Because the pipeline crosses an
international border, the State Department has become involved. The department is in the process of deciding
whether or not the project is in the best national interest. But many say the federal government is just
dragging its feet. The State Department
began deliberations on the proposed route back in 2011 and still no decision
has been handed down. President Obama
has made it clear, no matter what the State Department decides, he will have
the final say.

In fact, this latest ruling by a Nebraska court is the second time the pipeline route has been
delayed. The proposed path crosses
dangerously close to an aquifer, some say, and could pose a threat to the
drinking water. Environmentalists point
to recent events in Charlestown, West
Virginia to demonstrate
how important it is to safeguard the water supply.

President Obama personally
rejected the pipeline’s original route back in January 2012. But it was not just the president who was
concerned. Citizens of Nebraska and even the governor himself expressed reservations over
the original route. An alternative route
was then proposed, and that second route is what is now under review by the
State Department.

Officials in Canada, eager to get their oil moving, have lobbied President
Obama directly. This includes Prime
Minister Stephen Harper himself. Harper
has been critical of the president and the State Department whom he believes
are stalling for time.

In fact,
the issue was even brought up at the North American Summit in Toluca, Mexico on Wednesday.
President Obama says that he will not speed up the process. “Keystone will proceed along the path that’s
already been set forth,” says Obama. “I know it’s been extensive and at times,
I’m sure, Stephen feels, a little too laborious.”

Rigorous commission review inevitable

Attorney
for the Natural Resources Defense Council Anthony Swift says that the review by
the commission will most likely be very rigorous, more so than the path set
forth by the governor. “I wouldn’t think it’s a sure bet by any means that
the PSC will land on the same route,” says Swift.

“Because the state of Nebraska made a thorough review of the alternative
route, we would expect the Nebraska Public Service Commission to make the same
decision as the governor in approving the new route and to do so in a timely
manner,” says SenatorJohn Hoeven, of North Dakota.

In her
ruling, Judge Stacy said that the new legislation concerning the pipeline was
“unconstitutional and void.”

“Because the governor’s actions of Jan. 22, 2013, in approving the Keystone XL Pipeline
route were predicated on an unconstitutional statute, the court also finds the
governor’s actions in that regard must be declared null and void,” said Judge
Stacy.

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